In a surprise move, RBI has hiked the repo rate by 25 bps to 8 % in its monetary policy review. However, the CRR remains unchanged.
Policy Review Highlights
CPI inflation remains high
8 % inflation forecast
MSF, bank rate adjusted to 9 %
Cash Reserve Ratio (CRR) unchanged at 4 %
Slowdown in economy worrisome
Finacial Year 2015 Current Account Deficit seen below 5 % of GDP
The next policy review is scheduled for April 1, 2014. The extent and direction of further policy steps will be depedent on key economic data .